Press Releases Mar 10, 2003

SHUTTERFLY LAUNCHES FIRST PHASE OF FOCUS, A MULTI-FACETED CUSTOMER PERSONALIZATION PROGRAM

REDWOOD CITY, CALIF. – (March 10, 2003) — Shutterfly, the leading online photo service, today announced the launch of the first phase of its distinctive and multifaceted customer personalization program. Called FOCUS, it is designed to provide Shutterfly customers with unparalleled, custom service. The customization will initially begin with promotions targeted to the needs of different groups of Shutterfly customers.

FOCUS leverages Shutterfly’s state-of-the-art proprietary technology to deliver offers or rewards that best serve specific Shutterfly customer segments. Each of several customer segments will receive their own exclusive messages and promotions through emails and on the Shutterfly website.

“FOCUS demonstrates Shutterfly’s commitment to listening to our customers and continually refining our offerings to best serve their needs,” said Jennie Martzloff, Director of Customer Marketing at Shutterfly. “This program is a leap in the evolution of our hallmark service and personalization that has made Shutterfly the most successful online photo service in the industry today.”

“FOCUS is the first program of its kind in the industry,” noted Martzloff. “We see it as an evolution from the more traditional kind of delivery system that offers the same promotion to all customers, to a system that is highly segmented and customized. FOCUS will later be expanded to include additional messages and points of contact that will make the Shutterfly customer experience even more relevant. These include triggered interactive messages to help customers when they are on site and tailored customer service.”

Shutterfly’s promotional programs have been enthusiastically received by both new and veteran customers. They have contributed substantially to the company’s 2002 revenue, which totaled more than $16 million, a 116 percent gain over the previous year.

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About Shutterfly
Shutterfly, the leading online photo service, leverages its proprietary technology and understanding of its customers to develop personalized, quality photo products and services that make it simple and fun for people to stay connected to those who matter most. Film and digital photographers alike can enjoy the benefits of Shutterfly’s photo services, including high-quality prints, image enhancements, personalization, free online storage and picture sharing. Customers can custom back-print and transform their pictures with special effects and borders as well as create photo cards, invitations, calendars, note cards, and Snapbooks™, all of which can be mailed anywhere in the world. Shutterfly is consistently recognized for its photo quality and innovative features, and was most recently rated best overall online photo service in a field of twelve by MacWorld in its June 2002 issue. Shutterfly is based in Redwood City, CA. For more information, visit www.shutterfly.com.

Media Contacts:
Donel Young
732-295-2406